Fixed Term Contract CFOs

Fixed-Term Contract CFO Recruitment

FD Capital places Chief Financial Officers on fixed-term employment contracts for UK businesses that need senior finance leadership for a defined period — typically six to twenty-four months. Adrian Lawrence FCA, founder of FD Capital and a Fellow of the ICAEW, leads every fixed-term CFO mandate personally. Common situations include maternity and paternity leave cover, bridging a permanent CFO vacancy during an extended search, leading a specific programme — a transformation, an ERP implementation, an IPO preparation — or providing continuity of senior finance leadership through a period of business change where a permanent appointment is not yet the right decision.

The fixed-term contract CFO is distinct from an interim CFO in ways that matter legally, commercially, and operationally. Understanding the difference — and choosing the right model for your specific situation — is one of the first conversations FD Capital has with every client on a time-limited CFO requirement. Call 020 3287 9501 or email recruitment@fdcapital.co.uk. Shortlists typically delivered within three to seven working days.

“Adrian worked with us as our Fractional CFO for six months and we are genuinely grateful for the contribution he made. His financial expertise and calm, professional approach gave us confidence in our numbers and supported better decision-making across the business. I would recommend Adrian and FD Capital without hesitation.”

— Josh Haugh, MAS Technicae Group (International) Ltd, West Sussex

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Fixed-Term Contract CFO vs Interim CFO: The Key Differences

The terms “fixed-term” and “interim” are often used interchangeably in the market, but they describe meaningfully different employment arrangements with different legal, tax, and operational implications. Understanding the distinction helps businesses choose the right model and avoid the compliance risks of misclassifying the engagement.

Employment status and IR35

A fixed-term contract CFO is engaged directly as an employee of the business, on a contract of employment with a defined end date. This means the engagement is inside IR35 by definition — the CFO receives a salary, is subject to PAYE and National Insurance deductions, and accrues the employment rights associated with their tenure. An interim CFO, by contrast, is typically engaged through their personal service company on a day rate — and where the engagement is a genuine business-to-business arrangement, it may fall outside IR35, meaning the CFO is responsible for their own tax affairs. The IR35 determination for interim engagements is the responsibility of the end client (the business) under off-payroll working rules for medium and large businesses. The HMRC off-payroll working rules set out the criteria for determining employment status for tax purposes and the responsibilities of the end client in making that determination.

Employment rights and notice periods

A fixed-term employee accrues employment rights from day one of their contract — including the right to statutory sick pay, the right to accrue holiday at the statutory minimum rate, and — after two years of continuous employment — the right not to be unfairly dismissed. Fixed-term employees also have the right not to be treated less favourably than comparable permanent employees under the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002. Notice periods under a fixed-term contract are typically one to three months, providing both parties with more certainty and stability than the shorter notice common in interim arrangements. For a business covering a CFO maternity leave of twelve months, a fixed-term contract with an appropriate notice period provides far more certainty than an interim engagement that can be terminated or departed at short notice.

Commitment and cultural integration

A fixed-term contract CFO is more likely to invest in the business’s culture, relationships, and long-term outcomes than a short-term interim on a day rate. They attend team events, build relationships with the board and senior leadership, and make decisions with the medium term in mind rather than the immediate project deliverable. For businesses where the CFO role is highly relationship-dependent — where the CFO is a visible leader to the finance team and a significant presence in investor and lender relationships — the commitment and continuity of a fixed-term employee is often preferable to the transactional nature of a day-rate interim arrangement.

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When to Use a Fixed-Term Contract CFO

Maternity and paternity leave cover

The most straightforward case for a fixed-term CFO is covering a planned absence — typically maternity or paternity leave — where the business knows the duration of the cover required and wants someone who will integrate fully into the role rather than operate as a temporary contractor. The fixed-term model is specifically designed for this situation: the Fixed-Term Employees regulations were written with this use case in mind, and the employment contract can be structured to align precisely with the expected return date of the substantive CFO. The notice period provides both parties with flexibility if the return date changes. FD Capital places fixed-term maternity cover CFOs with a typical lead time of two to four weeks from confirmed brief to start date.

Bridging a permanent CFO vacancy

Permanent CFO recruitment takes time — typically three to six months for a well-run search from brief to start date, sometimes longer in specialist sectors or for roles with specific experience requirements. A business that loses its CFO unexpectedly cannot leave the role vacant for that period. A fixed-term CFO bridges the gap, maintaining financial leadership, investor relations, board reporting, and the finance team’s day-to-day function while the permanent search runs. The fixed-term contract provides the bridging CFO with the appropriate employment status and protections for what is, in effect, a temporary but full-time executive appointment. In some cases, the bridging CFO is subsequently offered the permanent role — a conversion that FD Capital can facilitate. See our CFO recruitment page for permanent search services running in parallel.

Programme-led appointments

Where a specific programme — an ERP implementation, an IPO preparation, a post-acquisition integration, a financial restructuring — has a defined start and end date, a fixed-term CFO appointed specifically for the programme duration is often the right structure. The fixed-term contract can be written with the programme milestones in mind, and the employment relationship is designed from the outset to end when the programme concludes. This is preferable to a permanent appointment when the business knows that the skills required for the programme are not the skills it will need from its permanent CFO once the programme is complete. See our transformation CFO and FD and ERP CFO pages for programme-specific context.

PE-backed portfolio company stabilisation

Private equity houses frequently use fixed-term CFO appointments at portfolio companies immediately post-acquisition, particularly where the existing finance leadership is not adequate for the PE reporting requirements and a permanent CFO search is underway. The fixed-term CFO stabilises the finance function, builds the board pack infrastructure, establishes covenant monitoring, and provides the PE house with the reporting quality it needs — all within a defined contractual period that ends when the permanent appointment is made. See our CFO recruitment for PE-backed businesses and recruiting a CFO with PE experience pages for PE-specific context.

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Typical Fixed-Term CFO Assignment Durations

Duration	Typical Situation	Notes
6 months	Bridging a recruitment gap; short programme support	Below 2 years: no unfair dismissal rights accrued
9–12 months	Maternity cover; PE portfolio stabilisation	Most common FTC duration in FD Capital placements
12–18 months	ERP implementation; IPO preparation; post-merger integration	Programme-aligned end date; milestone-based extension clauses common
18–24 months	Major transformation; extended programme leadership	Approaching permanent equivalent; consider whether permanent is more appropriate

Fixed-term contracts of two years or more are treated as permanent contracts for the purposes of unfair dismissal protection. FD Capital advises clients on the appropriate contract length at brief stage and can connect clients with employment law specialists where the contractual structure requires legal input.

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Fixed-Term Contract CFO: Rate and Cost Guide

Seniority / Context	Typical Salary (FTC basis)	Day Rate Equivalent (Interim)
Growth / scale-up CFO	£120,000–£180,000 pro-rata	£700–£1,100/day
Mid-market CFO	£160,000–£250,000 pro-rata	£900–£1,500/day
PE-backed / complex group CFO	£200,000–£350,000 pro-rata	£1,000–£1,800/day
Listed company / FTSE CFO	£280,000–£450,000 pro-rata	£1,400–£2,000/day

Fixed-term salaries are broadly comparable to permanent salaries at the same level, pro-rated for the contract duration. Employer NI and holiday accrual add approximately 15–20% to the gross salary cost. The day-rate equivalent figures illustrate the alternative interim cost for comparison — for shorter assignments (under six months), the day-rate interim model may be more cost-effective; for longer assignments, the fixed-term salary model typically delivers better value. See our CFO salary guide for broader benchmarking.

“FD Capital has supported SBS Insurance Services over the past three years through the provision of a Fractional FD/CFO. Their expertise has made a significant difference in professionalising our finance function and delivering accurate, timely management information — exactly what our business needed to grow with confidence.”

— Tracey Rees, COO, SBS Insurance Services Ltd

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Frequently Asked Questions

What is the difference between a fixed-term contract CFO and an interim CFO?

A fixed-term contract CFO is employed directly by the business on a contract of employment with a defined end date — inside IR35, on PAYE, with holiday and employment rights. An interim CFO is typically engaged through their personal service company on a day rate — a business-to-business arrangement where the IR35 status depends on the specific working arrangements and must be assessed by the end client. For assignments over six months where full-time commitment and cultural integration are important, the fixed-term model is usually preferable. For shorter, urgent, or project-specific roles, the interim day-rate model is often more appropriate. FD Capital advises on the right model for your specific situation.

Can a fixed-term CFO be converted to a permanent role?

Yes — and this happens regularly in FD Capital placements. Where a business appoints a fixed-term CFO to bridge a recruitment gap and finds that the individual is the right permanent appointment, converting the fixed-term contract to a permanent one is straightforward. The Fixed-Term Employees regulations do not prevent conversion to permanent employment. FD Capital does not charge an additional placement fee for a conversion from a fixed-term to a permanent appointment where the original placement was made through FD Capital.

How quickly can FD Capital place a fixed-term CFO?

For fixed-term appointments, FD Capital typically presents a shortlist within three to seven working days. Where the situation is urgent — an unexpected CFO departure, a maternity leave starting imminently — we can often present initial candidates within 48 hours and facilitate a start within two to three weeks. Call 020 3287 9501 directly for urgent requirements.

Do you also place Finance Directors on fixed-term contracts?

Yes. Fixed-term Finance Director appointments are equally common, particularly in mid-market businesses where the FD title is the norm. The employment structure and the considerations around IR35, notice periods, and employment rights are identical. See our Finance Director recruitment page for our FD placement service. For fixed-term FD placements specifically, see also our interim Finance Director page for comparison of the two models at FD level.

Are fixed-term CFOs available for part-time or hybrid arrangements?

Yes. A fixed-term contract can be structured on a part-time basis — for example, three days per week for twelve months — which provides the employment relationship and the stability of a fixed-term appointment while reducing the cost to reflect the part-time commitment. This model suits businesses that need a senior finance presence but do not require five days per week of CFO time. See our part-time CFO page for ongoing part-time arrangements and our fractional CFO page for the more flexible fractional engagement model.

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Related Services

Interim CFO | Fractional CFO | Part-Time CFO | CFO Recruitment | Outsourced CFO | Interim Finance Director | Transformation CFO & FD | ERP CFO | IPO CFO | CFO Recruitment for PE-backed Businesses | Listed Company CFO | Finance Director Recruitment | CFO Salary Guide

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